News: Tesco to call on Tatas, Landmark to talk ties

(TNN 03/02/2007) New Delhi - The global chief of UK retail giant Tesco, Sir Terry Leahy, is flying down to India this month to meet potential partners for its retail foray in India. The buzz is that meetings are scheduled with Ratan Tata and the Bangalore-based Landmark Group.

Sir Terry’s proposed India visit will take place within a month of Carrefour chairman Jose Luis Duran’s stopover in India.

Industry experts say there’s a certain logic to such high-profile visits. It seems a section of the government is keen that Indian companies quickly enter into partnerships with global retailers—on the lines of the Bharti-Wal-Mart alliance—in quick succession so that it’s not seen siding with either.

And for Tesco, the government’s eagerness makes perfect sense. With Wal-Mart already in India and Carrefour set to seal a tie-up, the UK retailer wouldn’t want to wait any longer.

Credited with Tesco’s $72-billion global expansion, Sir Terry is expected to meet Mr Tata’s top team, represented by Tata Coffee chairman R Krishna Kumar as well as that of Croma, the durables venture with Australia’s Woolsworth.

While Tatas are considered to be a natural fit for Tesco at this juncture, Sir Terry is also likely to sit for a meeting with the Landmark Group honchos, making it a dark horse. Sources said the $500-million Landmark has already had preliminary talks with Tesco after breaking negotiations with Carrefour.